IRS Announces 403(b) Employee Retirement Plan Compliance Project

Expect to Receive Form 866-A

The IRS has launched a compliance project focusing on higher education organizations sponsoring 403(b) plans, specifically the organizations' satisfaction of Universal Availability (UA) rules and the new requirements pertaining to plan documents. Section 403(b) permits public schools and other nonprofit employers to sponsor employee retirement savings on a tax-deferred basis. The IRS Employee Plans Compliance Unit (EPCU) reported that its Section 403(b) audits have shown repeated failure to satisfy UA requirements resulting in this error consistently landing in the IRS's top 10 list of deficiencies. These failures can result in the loss of valuable tax benefits to employees and jeopardize retirement savings for an organization's entire Section 403(b) plan. For further information and to view full article, click here.

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Higher Education Expertise

Colleges and Universities are likely to incur new challenges assuring that their 403(b) criteria meet the intricate requirements laid forth by both the Employee Retirement Income Security and the Internal Revenue Code. Due to recent regulatory and administrative changes in the standards governing 403(b) plans, Feeley & Driscoll has the resources and expertise to prepare and help your company achieve the desired financial goals. We realize that these short articles cannot answer all of the questions that concern you, so please feel free contact us by email or by calling us at (888) 875-9770 with any questions.

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